More Orlando rooms empty

Occupancy levels fell 1 percent in June, but did not include Disney hotels, the survey says.

July 25, 2007|By Christopher Boyd, Sentinel Staff Writer

Metro Orlando hotels had more empty rooms in June than in that same month a year ago, extending a long-running trend that underscores the increased competition coming from time-share and vacation-home rentals.

Year-over-year hotel occupancy levels decreased nearly 1 percent in June, while room rates increased 1.7 percent, according to a monthly Smith Travel Research survey. On average, about three-quarters of the more than 71,000 hotels rooms surveyed was occupied.

Smith samples more than half the region's hotels and motels but doesn't include hotels in Walt Disney World.

Occupancy levels for the region fell 1.6 percent during the first six months of the year compared with the first half of 2006.

Hotels have been compensating for lower occupancy rates with higher room charges. The average Orlando area room rate rose 1.7 percent in June, lower than in many earlier months when occupancy dropped.

"You can't keep increasing room rates forever," said Rich Maladecki, president of the Central Florida Hotel and Lodging Association. "We have been predicting for some time that room rates would start going flat."

Many hoteliers suspect that part of the occupancy-level problem comes from stealthy competition. Time-share owners often rent their units to other travelers, and a growing number of houses near the theme parks are now rented for short periods to vacationers.

Bill Jones, general manager of the Clarion Hotel in the International Drive area, said Internet travel planning is contributing to the rise of alternative vacation housing.

"People are doing their research in almost unbelievable numbers online," Jones said. "The Internet gives individuals who want to rent their property short-term a way of reaching customers."

A slowing economy might also be a contributing factor.

"Hoteliers are watching the whole economic situation very closely," said Mark Moravec, general manager of the Orlando Downtown Marriott hotel. "The economic cycle is entering a slowdown right now. It's like being on a roller coaster. When occupancy goes down, people want to raise room rates. But that only goes so far."